State of the Global Workplace - Gallup Report (2017)

State of
the Global
Workplace
85% of employees worldwide are not engaged or
are actively disengaged in their job. Discover what
organizations everywhere can do about it.

iCopyright © 2017 Gallup, Inc. All rights reserved.
State of the Global Workplace
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State of the Global Workplace
ii Copyright © 2017 Gallup, Inc. All rights reserved.
“We change the world one client at a
time through extraordinary analytics
and advice on everything important
facing humankind.”
– JIM CLIFTON, CHAIRMAN AND CEO

1Copyright © 2017 Gallup, Inc. All rights reserved.
State of the Global Workplace | About This Report
About This Report
GALLUP’S STATE OF THE GLOBAL WORKPLACE report summarizes a wealth
of data on how effectively employers and countries around the world are
using the human capital in their workforces. Gallup World Poll results from
155 countries provide the context to discuss labor markets and workplace
conditions across global regions. The report covers a series of strategies for
maximizing workplace productivity, reveals regional workforce metrics and
features country-specific spotlight articles that offer insights from Gallup’s
workplace consultants around the world.
ABOUT GALLUP
Gallup delivers analytics and advice to help leaders and organizations solve
their most pressing problems. Combining more than 80 years of experience
with our global reach, Gallup knows more about the attitudes and behaviors
of employees, customers, students and citizens than any other organization
in the world.
For more information about Gallup solutions for optimizing business
performance, please visit Gallup.com/contact.

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State of the Global Workplace | From the Chairman and CEO
From the Chairman and CEO
GLOBAL PRODUCTIVITY GROWTH IS
IN DECLINE.
GDP PER CAPITA — OR PRODUCTIVITY — is a key
metric in global economics. It is the starting point
for measuring almost everything having to do with
economic growth and human development.
When the world’s productivity is in decline, so is the availability of good jobs
with a living wage. Poor productivity stunts societal and economic growth.
My conclusion from reading this report is that global productivity can be
fixed. Executives and a wide variety of team leaders at many different levels
could change the world’s productivity quickly.
Gallup analytics find that “There is someone at work who encourages
my development” is one of the best survey questions that separates
enthusiastic, high-performing workers from low-performing, miserable ones.
The Fix for Declining Productivity
1. Move the whole world to a workplace strategy of “high development.”
The single best activity for any team leader to deliver is not employee
satisfaction, but rather employee development.
2. Make every workplace in the world strengths-based. The current
practice of management — which attempts to turn weaknesses into
strengths — doesn’t work. Moving to strengths-based workplaces
will change global productivity and growth overnight.

State of the Global Workplace | From the Chairman and CEO
3. Move the world’s workplace mission from paycheck to purpose. Of
course, all employees need fair pay. But they are now driven more
than ever by mission and purpose and require a workplace culture
that delivers it.
4. Move the whole world to one workplace metric. Use the Gallup
Q12
as you would Net Promoter Score — but for employees. The
Gallup Q12
has more tested and validated survey items with more
analytics, breakthroughs and discoveries than any other employee
measurement system in the world. These are the right benchmarks
for any organization. And it serves all of us when we use the same
metrics and language.
According to this report, worldwide employee engagement is only 15%.
What if we doubled that? What if we tripled it? Imagine how quickly that
would fix global GDP, productivity and hence, human development.
Jim Clifton
Chairman and CEO

4 Copyright © 2017 Gallup, Inc. All rights reserved.
State of the Global Workplace | Executive Summary
Executive Summary
A CLOSER LOOK AT THE WORLD’S WORKFORCES
ALMOST A DECADE AFTER THE onset of the Great Recession, the world
economy continues to struggle. The global gross domestic product has
puttered along at under 3% growth since 2012, well below historical norms.
Widespread joblessness — particularly among young people — has led to
social and political strife in many areas. Since 2015, economic frustrations
have likely contributed to a rise in nationalism and growing resentment
toward immigrants, particularly in the U.S. and Europe.
The resulting social and political volatility is not just a government issue.
These conditions dampen business development as skittish investors weigh
increased risk. To achieve productivity gains while avoiding the instability
that disrupts sustainable growth, governments and businesses alike need
to place new focus on the resources and strategies they use to develop
and empower their citizens and workforces. Broad-based strategies for
human capital development give more individuals a stake in the success of
their employer or their country, boosting their motivation and reducing the
potential for conflict.
For governments, the goal is to expand the availability of high-quality jobs
and the number of residents qualified to take them. Gallup’s global surveys
from 2014 to 2016 indicate that 32% of working-age adults across 155
countries are employed full time for an employer — an important measure of
the availability of good jobs.
However, Gallup’s workplace analytics identify immense room for
productivity gains among those employees. Worldwide, the percentage of
adults who work full time for an employer and are engaged at work — they

are highly involved in and enthusiastic about their work and workplace
— is just 15%. That low percentage of engaged employees is a barrier to
creating high-performing cultures. It implies a stunning amount of wasted
potential, given that business units in the top quartile of our global employee
engagement database are 17% more productive and 21% more profitable
than those in the bottom quartile.
Why is the global proportion of employees who are engaged in their work
so low? There are many potential reasons — but resistance to change is a
common underlying theme in Gallup’s research and experience. In particular,
organizations and institutions have often been slow to adapt to the rapid
changes produced by the spread of information technology, the globalization
of markets for products and labor, the rise of the gig economy, and
younger workers’ unique expectations. Business and political leaders must
recognize when traditional patterns in management practices, education or
gender roles, for example, become roadblocks to workers’ motivation and
productivity, and when selectively disrupting tradition will help clear a path to
greater prosperity and transformed company cultures.
Improving Productivity by Working Toward a More
Employee-Centered World
A few patterns in Gallup’s global employee engagement data are consistent
worldwide. For example, in virtually all regions, employee engagement levels
tend to be lower in industries characterized by more routinized jobs, such
as manufacturing and production. The conventional management mentality
in these industries often puts process ahead of people, contrary to the
employee-centered focus that promotes improved business performance.
However, some differences in employee engagement across global regions
can’t be attributed to macroeconomic factors like the prevalence of different
job types. One of the most surprising differences is that the proportion
of engaged employees in Western Europe — one of the world’s most
economically developed regions — is even lower than the global average.
Only 10% of employed Western Europeans are engaged at work; by
comparison, the figure among U.S. employees is more than three times as
high, at 33%. The contrast suggests that management practices

are a key factor in U.S. companies’ ongoing productivity edge over their
European counterparts.
Businesses that orient performance management systems around basic
human needs for psychological engagement — such as positive workplace
relationships, frequent recognition, ongoing performance conversations
and opportunities for personal development — get the most out of their
employees. However, Gallup global engagement analytics suggest that
those conditions are less common in some cultural settings than in others.
For example, a strong historical tradition of hierarchical leadership — such
as in East Asia, where just 6% of employees are engaged at work — may
contribute to company cultures that make it more difficult for managers to
adopt a “coaching” mindset that places more emphasis on what employees
need to reach their potential for productivity and other business outcomes.
In some cases, however, the capacity for increased workforce productivity
may depend on an organization’s ability to overcome hurdles so they can
adapt to changing circumstances. In Japan, for example, businesses face
an urgent need to focus on people management to counter a culture of
overwork that has led to increased rates of serious physical and mental
health problems. Japanese businesses also need more employee-centered
management practices if they are to tap into potential productivity gains from
one of the country’s most undervalued resources: working women.
Building Strengths-Based Workplaces to Unleash
Employees’ Potential
One of the most important ways in which command-and-control leadership
can stifle productivity is by denying employees the flexibility to gravitate
toward roles and responsibilities that play to their inherent abilities.
Strategies that allow individuals to identify, develop and use their natural
talents so they become strengths have the potential to dramatically improve
workforce productivity.
Employees who use their strengths on the job are more likely than others
to be intrinsically motivated by their work — simply because it feels less like
work to them. At the workgroup level, team members who know each other’s

strengths relate more effectively to one another, boosting group cohesion. In
a study of almost 50,000 business units in 45 countries, Gallup researchers
discovered that workgroups that received strengths interventions saw
sales increase by 10% to 19% and profits by 14% to 29%, compared with
control groups.
In many cases, making better use of employees’ strengths will require
businesses to grant workers greater input and autonomy to use those
strengths. This approach often requires a profound shift in management
perspective, as traditional manager-employee power dynamics give way to
more personalized relationships through which managers position their team
members for maximum impact according to their individual strengths.
The resulting sense of empowerment benefits both the employee and the
organization. Employees who strongly agree that their opinions count at
work are more likely to feel personally invested in their job. Gallup’s global
data suggest that without such opportunities, workers are more likely to
doubt their ability to get ahead by working hard — a devastating blow to
their motivation and productivity. Higher levels of autonomy also promote
the development and implementation of new ideas as employees feel
empowered to pursue entrepreneurial goals that benefit the organization —
that is, to be “intrapreneurs.”
Hiring Great Managers to Implement Positive Change
Workgroup managers are the most critical players in the effort to implement
performance management systems that are performance-oriented,
engagement-based and strengths-focused. Gallup’s workplace analytics
and experience have shown that unhappy employees often leave their
job because of a poor relationship with a manager. Conversely, talented
managers naturally help maximize productivity by building strong, positive
relationships. They work to understand employees’ sources of intrinsic
motivation — the talents and goals that keep them focused and help
them achieve.
That individualized approach helps great managers account for generational
differences in employee expectations, such as a lack of tolerance among

millennial employees — particularly in more economically developed regions
— for workplaces they believe stunt their growth. On the other hand, in
China and other countries that have historically emphasized respect for
elders, older workers may be put off by the idea that their manager should
also act as their “coach,” so managers may need to adopt a more deferential
approach. Great managers understand these differing perspectives and
develop flexible strategies for engaging each employee accordingly.
As the broad discrepancies in workforce productivity around the world
demonstrate, maximizing the value of human capital is not an easy
proposition. It’s a goal that requires strategic efforts at various societal
levels, from national populations to businesses and organizations to
individual residents. It requires leaders to understand when past behaviors
and traditions will no longer lead to future prosperity and success. When
employers and public officials align to establish the conditions that promote
productivity, resilience and self-determination in their workforces, they are far
more likely to tap the economic energy they need for sustainable growth.
Business leaders have a pivotal role to play in this process. Among the best-
managed companies in Gallup’s database, as many as 70% of employees
are engaged, demonstrating the vast potential for improvement on this
measure — one that is associated with gains in productivity and other key
business outcomes. Companies that prioritize employee engagement will
be the ones that help their country achieve social stability and higher living
standards. And the jobs they create will provide residents not only with
financial security, but also with a sense of self-worth and optimism about
the future.
For more information about Gallup’s research on the challenges and
opportunities currently facing workplaces around the world, see our
complete State of the Global Workplace report. The report features chapters
addressing each of the major themes discussed here, as well as sections on
each region and spotlight articles with input from Gallup consultants around
the globe.

Businesses that orient performance
management systems around basic
human needs for psychological
engagement get the most out of
their employees.

This report covers strategies for maximizing workplace
productivity, reveals regional workforce metrics and
features country-specific articles that offer insights from
Gallup’s workplace consultants around the world.
State of the Global Workplace | Table of Contents

State of the Global Workplace | Table of Contents
TABLE
OF CONTENTS
12
01 Untapped Human Capital: The Next Great
Global Resource
32
02 High-Performing Workplace Cultures Need
Engaged Employees
50
03 Strengths-Based Team Leadership
62
04 Tapping Entrepreneurial Energy for
Job Growth
76
05 Western Europe
96
06 Eastern Europe
104
07 Post-Soviet Eurasia
112
08 Middle East/North Africa
122
09 Sub-Saharan Africa
130
10 East Asia
146
11 Southeast Asia
154
12 South Asia
164
13 Australia/New Zealand
172
14 Latin America
180
15 United States/Canada
188
Appendix 1: Methodology Notes
191
Appendix 2: Support Information
206
References

Copyright © 2017 Gallup, Inc. All rights reserved.12
01Untapped Human
Capital: The Next
Great Global
Resource

State of the Global Workplace | 01 | Untapped Human Capital: The Next Great Global Resource
32%
of working-age adults worldwide
have a "good job."

WE START WITH A BASIC question about the job market in a given country:
How many residents have a good job? Gallup defines a “good job” as any
full-time work for an employer. In more economically developed countries,
small and medium-sized enterprises (SMEs) account for most employment.
Less developed countries, by contrast, have a few large employers
(typically including the government) but very few SMEs. In these countries,
many residents are engaged in microenterprises. They eke out a living in
subsistence activities like small-scale farming, even though this work offers
little opportunity for them to progress toward a better future. It is all they have
in the absence of good jobs.
In macroeconomic terms, work at subsistence level does nothing to increase
per-person productivity — the factor that drives economic development.
Rapidly rising productivity in some countries but not others has led to huge
disparities in global living standards, particularly since the technological
advances of the Industrial Revolution in the 19th
century.
These gaps underlie much of the suffering and instability in the world today,
and they are nowhere more clearly reflected than in the availability of good
jobs around the world. It has become increasingly clear that promoting
job growth, particularly in countries where it is most desperately needed,
requires a coordinated effort by societal and business leaders.
•• Political leaders must work to ensure that supports for human capital
development are in place — most importantly, to provide equitable
education opportunities that align with the country’s labor market
needs and promote adaptability amid rapid technological changes.
•• Employers, especially those in the private sector, must ensure that
they are prepared to make the most of the resulting human capital by
creating workplace cultures that drive performance development and
allow individuals to make the best use of their time and talents.

Leaders who work together on conditions that maximize productivity and
resilience along the education-employment spectrum offer the best hope for
the job growth that many countries need to escape economic stagnation.
The goal is to generate sustainable economic energy with the factors that
promote human capital development at three levels: societies, employers
and individuals.
Though Gallup research evaluates factors at all three levels, this report
primarily focuses on employers’ role in the process.
INDIVIDUAL-LEVEL SUPPORTS: Supports for human capital development at
the individual level include tools that promote self-awareness and strengths
development and mentoring programs such as those on career development
or financial health.
PERSONAL DEVELOPMENT AND FOCUS ON STRENGTHS: Unlocking human
potential through personal development and a focus on individuals’ innate
strengths requires commitment by both employers and individuals.
EMPLOYER-LEVEL SUPPORTS: State of the Global Workplace describes
employers’ roles in developing human capital to maximize their productivity
and drive growth. Most of the world’s businesses and organizations fall short
in establishing these supports, resulting in wasted potential.
EDUCATION-WORKFORCE TIES AND ENTREPRENEURSHIP TRAINING AND
FINANCING: Some supports require coordinated efforts at the societal and
organizational levels. Examples include support for new business startups
and education-workforce ties such as internships.
SOCIETY-LEVEL SUPPORTS: Society-level supports are mostly in the public
policy domain; responsible governments lay the foundation for human capital
development by guaranteeing security and rule of law and ensuring equitable
access to essential services like education and healthcare. Public-private
partnerships often expand access to these and other vital supports, such as
financial and IT services.

HUMAN CAPITAL DEVELOPMENT MODEL
Human capital development requires strategies for empowering people at
various levels of society, from national institutions to public or private employers
to individuals.
INDIVIDUAL-
LEVEL SUPPORTS
Mentoring
Strengths identification
and development
EMPLOYER-LEVEL SUPPORTS
Performance development systems
Great managers | Culture of engagement
SOCIETY-LEVEL SUPPORTS
Financial inclusion | Information technology | Education
Healthcare | Physical infrastructure (roads, electricity)
Public safety | Rule of law
OUTCOMES
Growth in good jobs
Rising per-person productivity
Improved well-being indicators
PERSONAL DEVELOPMENT
FOCUS ON STRENGTHS
EDUCATION-
WORKFORCE TIES
ENTREPRENEURSHIP
TRAINING AND FINANCING

GOOD JOBS RATE VARIES WIDELY THROUGHOUT WORLD
Close to one-third of working-age adults around the world work full time (at
least 30 hours per week) for an employer — our definition of a good job.
More specifically, 32% of residents aged 23 to 651
across the 155 countries
surveyed for Gallup World Polls conducted from 2014 to 2016 fall into
this category.
At the country level, the good jobs rate ranges from 5% in Niger to 72% in
the United Arab Emirates. In the world’s poorest region, sub-Saharan Africa,
the good jobs rate exceeds 30% only in the tiny island nation of Mauritius
(42%); by contrast, in Western Europe, it falls below 40% only in Italy (36%),
Spain (37%) and Ireland (39%).
These good jobs data can be segmented in countless ways to produce
insights on how local conditions influence employment opportunities. A
broad look at results by global region gives a bird’s-eye view of how the
availability of full-time work for employers varies by economic development
level. For example, working-age residents in the U.S./Canada are about four
times more likely than residents in sub-Saharan Africa to hold a good job
(56% vs. 14%, respectively).
Comparing the results for men and women offers a look at how traditional
gender roles may affect levels of
full-time employment. Gender gaps in
the percentage of residents who are
employed full time for an employer
are largest in the Middle East/North
Africa region and South Asia; these
regions have among the lowest
proportions of residents working full
time for an employer, largely because
of the unusually low percentages of
women with a good job.
1 Analysis of employment data includes respondents aged 23 to 65 with the assumption that individuals younger
and older than this range are more likely to be out of the workforce for socially desirable reasons (e.g., education
or retirement).
1 in 3working-age adults
worldwide have a “good job.”

PERCENTAGE OF POPULATION EMPLOYED FULL TIME FOR AN EMPLOYER
Based on data aggregated from 2014-2016 Gallup World Polls*
Total
%
Men
%
Women
%
Gender gap
(pct. pts.)
World
(155 countries surveyed)
32 42 23 19
South Asia 28 43 14 29
Middle East/
North Africa
24 37 10 27
Latin America 32 43 22 21
Australia/
New Zealand
46 56 38 18
Southeast Asia 25 35 17 18
U.S./Canada 56 64 48 16
Post-Soviet Eurasia 50 58 44 14
East Asia 34 40 27 13
Eastern Europe 49 55 43 12
Western Europe 45 51 39 12
Sub-Saharan Africa 14 19 9 10
*Within each region, results are weighted proportionally by population size in each country.
Population includes ages 23 to 65.

WHERE THE JOBS ARE
Adults aged 23-65 and employed full time for an employer
Gallup World Poll, 2014-2016
Gray countries were not included in this study. See
the appendix for "good jobs" data, by country.
% Employed full time for
an employer
5% 72%
UAENiger

EMPLOYEE ENGAGEMENT
The global aggregate from Gallup data collected in 2014, 2015 and 2016
across 155 countries indicates that just 15% of employees worldwide are
engaged in their job. Two-thirds are
not engaged, and 18% are actively
disengaged. The two Western-
hemisphere regions — U.S./Canada
and Latin America — lead the world
in the percentage of employees who
are engaged at work. However, at
31% and 27%, respectively, plenty of
opportunity remains in each region to
increase productivity through higher
engagement levels.2
In each country, residents who indicate they are employed by an employer
are asked a series of questions from Gallup’s Q12®
, which measures
employee engagement and its impact on business outcomes. (See Chapter
2 for more information on Gallup’s approach to measuring employee
engagement.) The results place employees into one of three groups that
characterize the extent to which they are motivated by a sense of support
and emotional attachment to their employer.
•• Engaged: Employees are highly involved in and enthusiastic about
their work and workplace. They are psychological “owners,” drive
performance and innovation, and move the organization forward.
•• Not engaged: Employees are psychologically unattached to their
work and company. Because their engagement needs are not being
fully met, they’re putting time — but not energy or passion — into
their work.
2 Notably, Gallup’s World Poll surveys have consistently supported the notion that Latin Americans have a tendency
to evaluate various aspects of their lives more positively on average than do respondents in other regions. This effect
likely inflates employee engagement results from the region relative to those from elsewhere in the world.
15%of employees worldwide are
engaged in their job.

•• Actively disengaged: Employees aren’t just unhappy at work — they
are resentful that their needs aren’t being met and are acting out their
unhappiness. Every day, these workers potentially undermine what
their engaged coworkers accomplish.
When analyzing the data, some of the most startling regional findings come
from Western Europe. Given that it is among the world’s most economically
developed regions, one might expect its results — like those from the U.S./
Canada — to be among the most positive. However, just 10% of Western
European employees are engaged at work, while the vast majority (71%)
are not engaged, and 19% are actively disengaged. The Western Europe
regional chapter offers a country-by-country breakdown of these results, as
well as country spotlight articles that explore reasons for disaffection among
many European workers.
Some of the most startling regional findings come from
Western Europe.
10%
of employees are
engaged at work.
71%
of employees
are not engaged
at work.
19%
of employees are actively
disengaged at work.

EMPLOYEE ENGAGEMENT RESULTS AMONG RESIDENTS WHO ARE
EMPLOYED FOR AN EMPLOYER
Based on data aggregated from 2014-2016 Gallup World Polls*
% Engaged % Actively disengaged% Not engaged
World
U.S./Canada
Latin America
Post-Soviet Eurasia
Southeast Asia
Sub-Saharan Africa
Eastern Europe
Australia/
New Zealand
Middle East/
North Africa
South Asia
Western Europe
East Asia
15 67 18
31 52 17
27 59 14
25 61 14
19 70 11
17 65 18
15 69 16
14 71 15
14 64 22
14 65 21
10 71 19
6 74 20
*Within each region, results are weighted proportionally by population size in each country.

Engagement Levels Vary by Job Type
Gallup consistently finds that engagement levels worldwide vary by job type.
Employees in knowledge-based jobs, such as managers and professionals
in various fields, are more likely to be engaged in their work than are those in
more routinized roles, such as clerical or manufacturing jobs. For example,
among professional workers worldwide, those who are engaged outnumber
those who are actively disengaged by more than two to one, while among
manufacturing and construction workers, twice as many employees are
actively disengaged as are engaged.
This makes sense given the kinds of workplace conditions that strengthen
engagement: opportunities for workers to voice their opinions, to expand
their skill sets and to use their unique combination of strengths. Gallup has
consistently found that manufacturing workers, in particular, struggle with
engagement. The conventional management mentality in this industry tends
to put process ahead of people, which runs counter to the employee-
centered focus that promotes engagement.
More generally, traditional command-
and-control management models
remain common throughout the world.
Employees in production or service
roles, for example, may have little say in
determining how their day is structured or
what could be done to improve their job
or workplace. Comparatively, employees
in professional or managerial roles may
find it easier to set their own priorities and
to share their opinions, helping to boost
their engagement.
Employees in
knowledge-based jobs,
such as managers and
professionals in various
fields, are more likely
to be engaged in their
work than are those
in more routinized
roles, such as clerical or
manufacturing jobs.

ENGAGEMENT AMONG EMPLOYED RESIDENTS WORLDWIDE
Engaged
%
Not
engaged
%
Actively
disengaged
%
Manager/Executive/Official: in a
business or the government
28 63 9
Professional: doctor, lawyer,
engineer, teacher, nurse, etc.
27 62 11
Service worker: maid, taxi driver,
maintenance or repair worker, etc.
18 64 18
Farmer/Fisherman/Other
agricultural laborer
18 60 22
Clerical/Other office worker/
Sales worker
14 72 14
Construction/Manufacturing/
Production worker
12 64 24
The good news is that, in the long run, the shift to more knowledge-based
work that results from technological advances and economic development
generally means more people have opportunities to be engaged at work. In
knowledge-based economies with equitable educational opportunities, many
workers will be able to focus their education on areas of natural strength and
move into jobs where they — and their employers — can reap the benefits of
improved employee engagement.
The bad news is that such development often does not happen very
equitably. Many employees in manual or highly routinized jobs are let go
and have little opportunity to acquire the skills and knowledge needed for a
new job in the growing knowledge-based sectors. And those who do retain
their job may feel more dismal about their own working conditions amid the
spread of knowledge-based industries.

For example, manufacturing companies that fail to consider workers’
individual goals and needs stand in sharp contrast to U.S. information
technology companies, many of which are known for going to great lengths
to support and retain their employees. Considering individual goals and
needs is a critical management challenge for employers in manufacturing,
retail and other sectors that, in many cases, don’t require advanced
education or skill levels.
However, it’s a challenge that many organizations meet by focusing on the
same essential elements of engagement that motivate workers in other
roles. Managers in more routinized sectors often place particular focus
on elements that heighten employees’ sense of accomplishment, such as
frequent recognition and opportunities for personal development.
“BRAIN DRAIN,” EMIGRATION OF HIGHLY EDUCATED WORKERS
One of the most critical questions for many leaders who are focused on
developing their country’s stock of human capital is how to retain employees
in high-skill positions. The desire among highly educated workers to
emigrate in search of better job opportunities is particularly common in
several developing regions — places where highly educated individuals are
most desperately needed, including in sub-Saharan Africa, Latin America
and the Middle East/North Africa region.

PERCENTAGE OF HIGHLY EDUCATED EMPLOYEES WHO WOULD LIKE TO
MOVE PERMANENTLY TO ANOTHER COUNTRY
Workplace cultures that promote engagement may be an important part
of the solution. In almost all regions, the desire to emigrate among highly
educated employees varies significantly by engagement level. Specifically,
actively disengaged employees are most likely to want to move permanently
to another country — often by a substantial margin. For example, in Western
Europe, 40% of actively disengaged employees respond this way versus
16% of engaged employees.
These results suggest that one way to reduce the “brain drain” problem
in many countries is to focus on moving highly skilled workers out of the
actively disengaged column. Often, actively disengaged employees have a
specific reason for harboring feelings of resentment toward their employer.
9
10
12
17
17
19
21
24
29
29
37
Australia/
New Zealand
U.S./Canada
South Asia
Post-Soviet Eurasia
Southeast Asia
East Asia
Western Europe
Eastern Europe
Latin America
Middle East/
North Africa
Sub-Saharan Africa

They may feel stuck with a manager who doesn’t understand or care about
them, for example, or that their employer is failing to fulfill basic conditions
promised to employees when they were hired — conditions that were part of
their formal contract or were less formal but clearly implied.
Whatever the reason, employers seeking to retain actively disengaged
employees must first understand the source of their discontent and then
make every effort to remove barriers to engagement. Examining the way
such employees are managed is a good place to start. One Gallup study
in Germany found that unemployed Germans were less likely to experience
negative emotions like sadness, stress and anger than were those who
worked for bad managers.
PRODUCTIVITY GAINS REQUIRE UNDERSTANDING WHAT MAKES
EMPLOYEES “TICK”
Raising the productivity and creativity of workforces is a goal that will have to
be addressed on multiple fronts. At the societal level, many countries have
work to do in bolstering the rule of law and improving critical supports for
human capital development, including education and healthcare, to lay the
groundwork for rising productivity. At the workplace level, employers need
new strategies for ensuring that workers’ day-to-day experiences keep them
motivated and make the most of their abilities. These areas are interrelated,
and each requires careful tracking and input, particularly from the
perspective of workers.
But the potential benefit to putting in this
effort is immense. In much the same way
that developing countries have bypassed
the need for expensive landline telecom
infrastructure by promoting wireless
networks, businesses in emerging markets
have opportunities to evade outdated
— and often costly — approaches to
performance management and employee
engagement. They must start by
recognizing that an organization’s
Employers need new
strategies for ensuring
that workers’ day-to-day
experiences keep them
motivated and make the
most of their abilities.

vitality and capacity for organic growth is inextricably tied to the everyday
experiences of its employees.
Effective approaches to maximizing human capital within
organizations include:
1. using management tools that track and improve the essential
workplace conditions that keep employees engaged and motivated
2. having a focus on identifying and leveraging the strengths of
every employee
3. developing an understanding of how to cultivate innovation and
entrepreneurial talent to promote new sources of growth from within
the organization
Gallup has developed these approaches over decades of workplace
research, and they are proven to be highly effective across a wide range of
industries and organizational types.
The return on investment in any one of these strategies is potentially great
— but the strategies also are complementary and can have a transformative
effect on workplace productivity when used in tandem. Just as importantly,
they can shift the mindset of an organization’s leadership to one that puts
human capital development first and, consequently, gain a far more reliable
foundation for future prosperity.

Businesses must recognize that an
organization's vitality and capacity for
organic growth is inextricably tied to the
everyday experiences of its employees.

02High-Performing
Workplace
Cultures Need
Engaged
Employees

State of the Global Workplace | 02 | High-Performing Workplace Cultures Need Engaged Employees
85%
of adults worldwide
are not engaged or are
actively disengaged.

TODAY’S WORKPLACES AND LEADERS ARE facing mounting pressures due
to new types of work arrangements, challenges to traditional management
styles and shifting expectations from workers. In response, most leaders who
Gallup works with understand the importance of creating high-performing
cultures; however, not all leaders understand or maximize the potential of
current employees to create this competitive advantage.
Gallup’s surveys with employees around the world find that just 15% are
currently engaged at work — that is, psychologically invested in their job
and motivated to be highly productive. Two-thirds worldwide (67%) are not
engaged, putting in time but little discretionary effort at work, and 18% are
actively disengaged — openly resentful that their workplace needs aren’t
being met.
However, these employee data vary significantly by industry and region,
raising the question: Is workplace engagement a concept that “travels” well?
In other words, is it relevant across cultural and economic contexts, as well
as different job types?
Generally, the answer is yes because Gallup’s Q12
engagement metric
addresses only the most fundamental aspects of human nature as it relates
to employment, such as the need for positive relationships, developmental
opportunities and a sense of purpose. While strategies for improving
these conditions must be tailored to specific workplace environments, the
conditions themselves are associated with positive business outcomes
across a broad range of industries and locations.

Gallup’s work with organizations around the world demonstrates that the
variation in employee engagement among employers within countries can
be far greater than the variation among countries. Across regional and
cultural contexts, there are companies that buck national engagement
trends, outperforming their domestic and international competitors and
creating workplace cultures that focus on meeting employees’ needs to drive
high performance.
These exceptional companies recognize that engaged employees are the
fuel of the organization, and they own this from the top of the house to the
front lines. They include many past winners of the Gallup Great Workplace
Award (GGWA). The award honors a select group of organizations that
focus on systematically creating a highly engaged and high-performing
workplace. GGWA winners boast a remarkable ratio of 14 engaged
employees for every one actively disengaged employee. Among award
recipients from the past three years are organizations operating in various
cultural and business environments:
•• China Merchants Property Development: real estate services
organization headquartered in Shenzhen, China
•• NXP Semiconductors: global semiconductor manufacturer
headquartered in Eindhoven, Netherlands
•• Indian Hotels Company Ltd.: chain of hotels and resorts
headquartered in Mumbai, India
•• NFU Mutual: insurance, investment and financial services
organization headquartered in Stratford-upon-Avon, U.K.
•• Mashreq Bank: banking services organization headquartered in
Dubai, United Arab Emirates

HIGHER EMPLOYEE ENGAGEMENT LEVELS ARE LINKED TO A
RANGE OF POSITIVE BUSINESS OUTCOMES
All of the companies listed on the previous page have experienced healthy
growth and other successes in recent years, largely as a result of the
performance of their workforce. In 2016, Gallup conducted the ninth
version of our meta-analysis (study of studies) to determine the relationship
between engagement — as measured by the Q12
— and business/work unit
profitability, productivity, employee retention and customer perceptions.
Despite massive changes in the economy and technology, the results of
the most recent meta-analysis are consistent with the results of previous
versions. Simply put, engaged employees produce better business
outcomes than do other employees across industry, across company size
and nationality, and in good economic times and bad.
Business or work units that score in the top quartile of their organization in
employee engagement have nearly double the odds of success (based on
a composite of financial, customer, retention, safety, quality, shrinkage and
absenteeism metrics) when compared with those in the bottom quartile.
Those at the 99th
percentile have four times the success rate of those at the
first percentile.

WHEN COMPARED WITH BUSINESS UNITS IN THE BOTTOM
QUARTILE OF ENGAGEMENT, THOSE IN THE TOP QUARTILE
REALIZE IMPROVEMENTS IN THE FOLLOWING AREAS:
41%
LOWER
Absenteeism
24%
LOWER
Turnover
(High-Turnover
Organizations)
59%
LOWER
Turnover
(Low-Turnover
Organizations)
28%
LESS
Shrinkage
70%
FEWER
Employee
Safety
Incidents
58%
FEWER
Patient
Safety
Incidents
40%
FEWER
Quality
Incidents
(Defects)
10%
HIGHER
Customer
Metrics
17%
HIGHER
Productivity
20%
HIGHER
Sales
21%
HIGHER
Profitability

Showing up and staying. Engaged employees make it a point to show up
to work and do more work — highly engaged business units realize 41% lower
absenteeism and 17% higher productivity. Engaged workers also are more
likely to stay with their employer. In organizations with high employee turnover,
highly engaged business units achieve 24% lower turnover. In those with
low employee turnover, the gains are even more dramatic: Highly engaged
business units achieve 59% lower turnover. High-turnover organizations are
those with more than 40% annualized turnover, and low-turnover organizations
are those with 40% or lower annualized turnover.
Shrinkage and quality. Engaged workers care more about the products
and services they deliver to customers and the overall performance of their
organization. Highly engaged business units experience 28% less shrinkage
(the dollar amount of unaccounted-for merchandise) and 40% fewer quality
incidents (defects).
Safety. Engaged workers are more mindful of their surroundings. They are
aware of safety procedures and are diligent about keeping their coworkers
and customers protected. Highly engaged business units realize 70% fewer
safety incidents and 58% fewer patient safety incidents.
Customer outcomes. Employees who are engaged consistently show up
to work and have a greater commitment to quality and safety. Understandably,
these employees also help their organization improve customer relationships
and obtain impressive organic growth. Highly engaged business units achieve
10% higher customer metrics and 20% higher sales.
Profit. The aforementioned outcomes converge to bring organizations
increased profitability. Engaged employees are more present and productive;
they are more attuned to the needs of customers; and they are more
observant of processes, standards and systems. The behaviors of highly
engaged business units result in 21% higher profitability.

Gallup’s research also shows that companies with engaged workforces
have higher earnings per share (EPS). In a recent study, we examined
publicly traded companies with EPS data available from 2011 to 2015 and
found that winners of the Gallup Great Workplace Award outperformed
their competitors who did not win. This finding is consistent with previous
analyses of the relationship between engagement and EPS.
Specifically, when comparing EPS from 2011 to 2013 with 2014 to 2015:
•• Publicly traded organizations that received the Gallup Great
Workplace Award experienced 115% growth in EPS, while their
competitors experienced 27% growth over the same time period.
•• The EPS of the best-practice organizations grew at a rate that was
4.3 times greater than that of their competitors.
•• The best-practice organizations in the study had 11 engaged
employees for every one actively disengaged employee. At
the beginning of their engagement journey with Gallup, these
organizations had an average of two engaged employees for every
one actively disengaged employee.
EMPLOYEE ENGAGEMENT: A PRIMER
Gallup measures employee engagement using a 12-element survey (Gallup’s
Q12
) rooted in employees’ performance management needs. When those
needs are met, employees become emotionally and psychologically attached
to their work and workplace. As a result, their individual performance soars,
and they propel their team and organization to improved crucial outcomes
such as higher levels of productivity, safety and quality.
Specifically, the Q12
is based on four types — or levels — of employees’
performance development needs:
1. basic needs
2. individual needs
3. teamwork needs
4. personal growth needs

41
Copyright © 1993-1998, 2017 Gallup, Inc. All rights reserved.
GALLUP'S Q12
Q01: I know what is expected of me at work.
Q02: I have the materials and equipment I need to do my work right.
Q03: At work, I have the opportunity to do what I do best every day.
Q04: In the last seven days, I have received recognition or praise for doing
good work.
Q05: My supervisor, or someone at work, seems to care about me as
a person.
Q06: There is someone at work who encourages my development.
Q07: At work, my opinions seem to count.
Q08: The mission or purpose of my company makes me feel my job
is important.
Q09: My associates or fellow employees are committed to doing
quality work.
Q10: I have a best friend at work.
Q11: In the last six months, someone at work has talked to me about
my progress.
Q12: This last year, I have had opportunities at work to learn and grow.
Engaged: Employees are highly involved in and enthusiastic about their work and
workplace. They are psychological “owners,” drive performance and innovation, and
move the organization forward.
Not engaged: Employees are psychologically unattached to their work and
company. Because their engagement needs are not being fully met, they’re putting
time — but not energy or passion — into their work.
Actively disengaged: Employees aren’t just unhappy at work — they are resentful
that their needs aren’t being met and are acting out their unhappiness. Every day,
these workers potentially undermine what their engaged coworkers accomplish.
GROW TH
NEEDS
TEAMWORK
NEEDS
INDIVIDUAL
NEEDS
BASIC
NEEDS

Employees need to be equipped to perform
and then positioned for individual and team
success. The first, second and third levels
create an environment of trust and support
that enables managers and employees to
get the most out of the fourth level.
These levels provide a road map for
managers to motivate and develop their
team members and improve the team
members’ performance, with each level
building on the previous.
For example, employees may feel connected to their team members, but if,
among other challenges, they don’t know what’s expected of them (a basic
need), don’t have the appropriate materials and equipment (a basic need)
or are not able to do what they do best (an individual need), their affiliation
with their team members is unlikely to have a positive impact on their
performance. Instead, time spent with their peers may more closely resemble
a gripe session than productive teamwork.
The levels do not represent phases. Managers do not “finish” the first level
and then move on to the second level. They must ensure that employees
know what is expected of them and have the right materials and equipment
to do their work while meeting needs on the second, third and fourth levels.
The best way to sustain progress is to keep doing more of what works
and using this hierarchy as a framework for understanding how to best
support employees, determine barriers to success and adjust accordingly.
Managers should, with their team members, identify needs and obstacles
on an ongoing basis and ideally take action before challenges inhibit
employees’ performance.
REAL GROWTH REQUIRES MORE THAN A SURVEY
For many leaders and managers, creating a culture of high performance is a
steadfast goal but one that remains elusive because too many organizations
focus primarily on measuring engagement rather than on taking the actions
Employees need to be
equipped to perform
and then positioned
for individual and
team success.

needed to engage employees.
Gallup has repeatedly found that one
of the greatest barriers to engaging
employees is a misguided notion of
what employee engagement actually
is and what it is meant to do. Many
well-intentioned organizations make a
common mistake: They make higher
engagement results themselves the
goal rather than focusing on the
improved performance outcomes
that higher engagement should help
them achieve.
Employee engagement measures
that have become increasingly
commoditized and transactional in
nature can promote this ineffective
focus. These products help
organizations gather information,
but many fail to provide the necessary insights on using the data to
create cultural change. Too often, the results of using such products are
shallow or short-term tactics that may move the needle for the next round
of engagement surveys but do little to improve organizational health and
productivity over the long term.
The action plans that result from measuring employee engagement shouldn’t
focus solely on making employees happier — they should be part of a
broader strategic framework that clearly articulates how higher engagement
levels result in improved business outcomes.
Make no mistake: Measurement does matter. But companies that base their
engagement strategy on a survey or metrics-only solution can get caught up
in a "rinse and repeat" pattern that does nothing to improve their business.
They focus on engagement periodically — usually around survey time. As a
result, these organizations are not able to achieve the high-performing
THE SURVEY TRAP
When organizations put too much
emphasis on measuring engagement
rather than improving engagement,
they fall into the “survey trap.” This
trap includes:
•• viewing engagement as "just"
a survey or program
•• defining engagement as a
percentage of employees
who are not dissatisfied
or are merely content with
their employer
•• relying on measures that tell
leaders and managers what
they want to hear
•• measuring workers'
satisfaction or happiness
levels and providing
frivolous perks

culture they seek and tend to make false promises to employees, pledging
change through intensive communication campaigns but providing little
actual follow-through and leadership support.
Creating a culture of engagement requires more than completing an annual
employee survey and then leaving managers on their own, hoping they
will learn something from the survey results that will change the way they
manage. It requires an organization to take a close look at how critical
engagement elements align with their performance development and human
capital strategies.
EMPLOYEES’ LIKELIHOOD TO BE ACTIVELY DISENGAGED HAS
FALLEN SINCE THE GREAT RECESSION
In 2016, results from Gallup’s annual World Poll and Gallup Daily tracking
surveys in the U.S. indicated that 17% of employees worldwide were
engaged — involved in, enthusiastic about and committed to their work and
workplace. That figure represents very gradual year-over-year improvement,
inching up five percentage points from 2009 to 2016.
There is more encouraging news at the other end of the employee
engagement spectrum: The world has seen an important decline in the
number of actively disengaged employees — those who spread negativity in
the workplace and often damage their organization’s bottom line. They
monopolize managers’ time, have more on-the-job accidents, account for
more quality defects, contribute to theft, miss more workdays and quit at a
higher rate than engaged employees do.
Globally, the percentage of actively disengaged employees
has decreased significantly since 2009.
26%
2009
VS. 17%
2016

45Copyright © 1993-1998, 2017 Gallup, Inc. All rights reserved.
In 2009, Gallup found that 26% of
employees were actively disengaged
— more than twice the proportion of
engaged employees. These results seem
logical when considering the jobs that
were lost during the Great Recession
in 2008 and 2009 — and the new
responsibilities employees acquired
at work to compensate for those who
were let go. The global proportion of
actively disengaged employees dropped
eight percentage points as economic
conditions improved between 2009
and 2014. In 2016, Gallup’s estimate of
actively disengaged employees was 17%,
the same as the proportion who were
engaged that year.
Regionally, the most dramatic declines in the proportion of actively
disengaged employees between 2009 and 2016 occurred in Eastern
Europe (30% to 14%) and post-Soviet Eurasia (37% to 12%), two regions
among the hardest hit when foreign direct investment dried up in the wake
of the global recession. The percentage of actively disengaged employees
also fell considerably in South Asia — from 34% in 2009 to 17% in 2016.
In South Asia and post-Soviet Eurasia, the engagement level that improved
most substantially was employees’ likelihood to agree that there is someone
at work who encourages their development.
The world has seen
an important decline
in the number of
actively disengaged
employees — those
who spread negativity
in the workplace
and often damage
their organization’s
bottom line.

WORLDWIDE, MOST WORKERS ARE INDIFFERENT
Regional and country-level results in this report are based on World Poll
data aggregated from 2014 to 2016 to ensure the samples of employees are
large enough for reliable analysis. The results reveal wide variation among
percentages of engaged employees in regions around the world: Employees
in the U.S./Canada and Latin America demonstrate the highest levels of
engagement at 31% and 27%, respectively. However, just 6% of employees
in East Asia are engaged, as are 10% of employees in Western Europe.
Regardless of its place in the global rankings, every region that Gallup tracks
is defined by one overarching finding: The majority of its workforce falls into
the “not engaged” category. Overall, 67% of worldwide employees fall into
this category, with regional averages ranging from 52% to 74%.
Leaders and managers often have a difficult time spotting employees who
are not engaged. These workers are not hostile or disruptive. They do not
hate their job or set out to wreak havoc. They are indifferent and will put the
time — but not the energy or passion — into their role. With a majority of
employees not engaged in their work, companies find it exceedingly difficult
to accelerate innovation, creativity, productivity and other essential elements
that go into improving organizational performance.
Employees who are not engaged represent a risk. These workers can tilt
either way — good or bad. Many employees want a reason to be inspired.
They are the “show me” group that needs an extra push to perform at their
Employees in the U.S./Canada and Latin America
demonstrate the highest levels of engagement.
31%
U.S./Canada
27%
Latin America

best. Imagine the effect on performance when leaders and managers push
these employees in the right direction.
CREATING A HIGH-PERFORMING CULTURE
Engaging employees takes work and commitment, but it is not impossible.
Exceptional workplaces share common philosophies and practices that can
be applied at all organizations. Here are a few characteristics that Gallup
finds in organizations that maintain high levels of engaged employees:
•• They know that engagement starts at the top. Highly engaged
organizations have highly committed leaders. These leaders
understand that business outcomes are easier to achieve with an
engaged workforce. As such, they are aligned in prioritizing employee
performance needs as a competitive, strategic point of differentiation.
They communicate openly and consistently, and they actively work on
identifying and removing systemic barriers that prevent managers and
employees from doing great work. They place the utmost importance
on using the right metrics and hiring and developing great managers.
Leaders of great workplaces also model the kind of psychological
ownership that characterizes high engagement, visibly working to
improve their own performance day by day.
•• They know local managers are in key positions to support
employees’ engagement and productivity levels. Exemplary
companies know that the experiences that inspire and encourage
employees are local — they take place at the workgroup level. Gallup
research shows that about 70% of the variance in engagement
among workgroups can be attributed to their manager. Great
companies support local managers by providing ongoing education
that helps them sharpen their managerial talents and stay attuned
to the factors that help promote high engagement on their team.
In light of consistent evidence highlighting workgroup managers’
importance, Gallup has developed a broad portfolio of development
and coaching modules in several languages for employees in these
critical roles.
•• They hold managers accountable for outcomes. Great
companies hold local managers accountable, not just for their team’s

engagement level, but also for how it relates to the team’s overall
performance. In some cases, that accountability is supported by
network-based tools and applications that help managers track
engagement-related metrics and develop individualized plans for
keeping team members motivated and productive.
•• They ensure that basic engagement requirements are met
before expecting an inspiring mission to matter. Only when
employees know what is expected of them, have what they need to
do their job right, are a good fit for their role and feel their manager
has their back will they feel invested enough to connect with
proclamations of mission or values — no matter how inspiring these
might sound in the head office.
•• They have a straightforward and decisive approach to
performance management. Companies with the highest
engagement levels use recognition as a powerful incentive currency
for developing employees’ capabilities. Conversely, they see
mediocrity as a hindrance to performance. These companies also
know that, to drive continual performance development, managers
and employees need frequent coaching conversations that help
employees stay focused and energized for the future.
•• They do not pursue engagement for its own sake. Highly
engaged organizations stay focused on the outcomes associated
with higher engagement levels, avoiding the survey trap described
earlier. Whether their focus is on increasing productivity overall
or on meeting organization-specific goals like lower turnover or
fewer safety incidents, they have a thorough understanding of
how outcomes relate to employee engagement, and they tailor
engagement-based strategies accordingly.
These organizations have well-defined and comprehensive development
programs for leaders and managers, and they focus on the development of
individuals and teams. Employee engagement is a fundamental consideration
in their strategy for making the most of their most valuable resources — the
talents and energy in their workforce.

Creating a culture of engagement requires
an organization to take a close look at
how critical engagement elements align
with their performance development and
human capital strategies.

03Strengths-Based
Team Leadership

State of the Global Workplace | 03 | Strengths-Based Team Leadership
32%
of employees worldwide strongly
agree they like what they do
each day.

WHY IS IT SO IMPORTANT to optimize
workplace conditions to support
employees’ productivity?
Consider the massive amount that
businesses spend on labor: Payroll
costs typically represent 15% to 30% of
gross revenue, but in some industries,
proportions of 50% or more are not
uncommon. In that light, the idea that 85% of the world’s employees are
not engaged or are actively disengaged at work and therefore are not
as motivated or productive as they could be is particularly alarming. Any
asset that is operating at just 15% of capacity — but particularly one that
represents such a substantial proportion of any business’ operating costs —
warrants attention.
If there is one area of focus with the potential to transform entire
organizational cultures to better optimize their human capital, it is a
strengths-based approach to management.
Gallup’s late chairman Don Clifton pioneered the study of strengths in the
workplace, affirming time and again over decades of research the gains
associated with helping people do what they are inherently good at. As he
demonstrated, employees who use their strengths on the job are more likely
than others to be intrinsically motivated by their work, simply because it feels
less like work to them.
"Your weaknesses will
never develop, while
your strengths will
develop infinitely."
— Don Clifton

A MORE CONSTRUCTIVE BASIS FOR
PERFORMANCE MANAGEMENT
Because the activities and demands of their job are more intrinsically
rewarding, employees who say they use their strengths every day are 8%
more productive and 15% less likely to quit their job. Moreover, managers
in strengths-based organizations waste little time trying to wring adequate
performance out of employees who are unsure if what they can contribute is
making a difference.
In fact, adopting a strengths-based culture transforms the very nature of
management, mitigating the adversity often inherent in employee-manager
relationships by casting managers as developmental coaches. It requires
managers who are curious about what makes people tick and who derive
genuine satisfaction from helping employees hone their strengths.
Such managers intuitively recognize when an employee’s strengths
are ignored, overplayed or misunderstood. In their hands, performance
evaluations are no longer dreaded, criticism-laced interactions that
often leave employees feeling defensive and resentful. They understand
that feedback and developmental coaching that focus on strengths and
accomplishments tend to improve performance more effectively than do
actions focused on fixing weaknesses.
Reorienting an organization around strengths is not necessarily an easy
proposition; it can be a radical shift, particularly in light of conventional
management theories that tend to focus on fixing employees’ weaknesses.
But once organizations implement strengths-based management practices,
the payoff in terms of employees’ motivation and productivity can be huge:
Employees who use their strengths every day are six times as likely to be
engaged at work as those who do not.

STRENGTHS-BASED DEVELOPMENT ENHANCES BUSINESS OUTCOMES
When companies support and develop strengths, employees are more engaged,
have better performance outcomes and are less likely to leave. In a study by
Gallup of ...
1.2M
employees
45
countries
49,495
business units
22
organizations
7
industries
… Gallup researchers discovered that, on average, workgroups that received
strengths interventions saw significant improvement in sales and profits,
among other measures, compared with control groups receiving less-intensive
interventions or none at all.
10% TO
19% 14% TO
29%increased sales increased profits

STRENGTHS-BASED CULTURES ARE REWARDING
FOR EMPLOYEES
Around the world, employees who strongly agree that they are able to do
what they do best every day at work are far more likely than those who do
not feel this way to strongly agree that:
1. they like what they do each day
2. they learn or do something interesting every day
CORRELATION BETWEEN EMPLOYEES USING THEIR STRENGTHS AND
LIKING WHAT THEY DO EACH DAY
Based on data aggregated from 2014-2016 Gallup World Polls
Employees who strongly agree they
like what they do each day
Overall
%
Among those who strongly
agree they have an opportunity
to do what they do best every
day at work
%
World 32 60
U.S./Canada 51 72
Latin America 52 71
South Asia 30 61
Southeast Asia 35 61
Sub-Saharan
Africa
35 56
Post-Soviet
Eurasia
32 53
Western Europe 29 50
Eastern Europe 25 48
East Asia 17 45
Australia/
New Zealand
21 43
Middle East/
North Africa
25 38

CORRELATION BETWEEN EMPLOYEES USING THEIR STRENGTHS AND
LEARNING EACH DAY
Based on data aggregated from 2014-2016 Gallup World Polls
Employees who strongly agree they
learn or do something interesting each day
Overall
%
Among those who strongly
agree they have an opportunity
to do what they do best every
day at work
%
World 26 47
Latin America 44 60
U.S./Canada 39 53
Sub-Saharan
Africa
33 52
Southeast Asia 26 48
South Asia 22 45
Western Europe 27 45
Post-Soviet
Eurasia
25 41
Australia/
New Zealand
22 38
East Asia 17 35
Eastern Europe 19 35
Middle East/
North Africa
20 30

STRENGTHS-BASED TEAMS ARE MORE COLLABORATIVE
AND COHESIVE
The benefits of a strengths-based culture are realized not only at the level
of individual employees, but also in the interactions among team members.
The best managers assemble teams strategically with a forensic eye for
employees’ individual and collective strengths. These managers are proactive
in their selections and avoid assigning teams based solely on team members’
availability. Knowing their team members’ strengths, talented managers can
set more targeted goals and maximize collaboration and productivity.
Team members who know each other’s strengths can more effectively
relate to one another, avoiding potential conflicts and boosting group
cohesion. Gallup analysts recently conducted a study of 11,441 teams
in six organizations where at least 30% of employees had completed
the CliftonStrengths assessment. They determined that team members’
awareness of their own strengths — and each other’s — more strongly
related to higher engagement and performance than did the specific
composition of strengths on the team.
A STRENGTHS FOCUS CAN HELP WORKERS STAY ANCHORED IN
TURBULENT TIMES
Strengths-based cultures transform organizations and promote adaptability
and resilience — qualities that are increasingly vital in labor markets around
the world. A strengths foundation that includes coaching and development
gives people a greater sense of confidence in their abilities — a sense of
their “true north” that helps them stay oriented for high productivity amid
shifting workplace needs.

Gallup’s work with businesses facing rapid changes brought about by
external factors like mergers or technological disruption demonstrates how
focusing on team members’ strengths can help maintain and even boost their
engagement through such challenging times. Strengths-based management
can also help better position businesses for organic growth by identifying
natural innovators within their workforces, as well as entrepreneurial-minded
employees who can carry new ideas to fruition.
Beyond helping businesses establish strengths-based cultures, Gallup
has in recent years been working with state and national governments to
implement large-scale strengths programs that increase well-being and
productivity among entire populations. If entire countries commit to exploring
strengths and empowering people to be and do their best every day, the
potential for economic and individual development is unlimited.
Empowering People to Succeed With the
CliftonStrengths Assessment
Don Clifton’s seminal work on strengths psychology led to the
development of the CliftonStrengths assessment, an online tool that
identifies a person’s natural talents within a framework of 34 themes.
By revealing how individuals most naturally think, feel and behave, the
assessment helps employees understand and build on the unique
areas in which they have the most potential to grow and succeed.
The instrument is at the heart of a global strengths movement that
addresses the untapped potential of individuals and workgroups. By
mid-2017, nearly 17 million people around the globe had taken the
CliftonStrengths assessment across 22 different languages. See the
appendix for a breakdown of assessment use by language.

What Does It Mean to Be a Strengths-Based Organization?
Some of the world’s most progressive companies have embraced the goal
of creating a strengths-based workplace. These companies target the entire
workforce — leaders, managers and employees — and create systems,
policies and procedures that support their strengths philosophy. As a result,
these companies realize greater gains in their business outcomes than do
those that take a less holistic approach to building a strengths-based culture.
Gallup has studied the world’s leading strengths-based companies and
discovered that they share compelling similarities. They have a mutual
philosophy that highlights the value of a strengths-based culture, and they
pursue that culture through four powerful strategies:
1. Leadership: Aligning the culture in a common language of strengths,
disseminated through companywide management practices and
communication. Some organizations designate a group of on-the-
ground strengths champions who support managers and teams in
their efforts to build a strengths-based culture.
2. Empowerment: Educating employees on the foundation of strengths
and enabling them to make contributions beyond their title, role or
job description.
3. Engagement: Generating excitement and enthusiasm for strengths-
based teams by fostering environments that celebrate diversity
and teamwork.
4. Development: Reorienting performance management systems
to evaluate, reward and develop employees based on what they
do best. Managers use individualized coaching focused on each
employee’s greatest opportunities for growth.
Systematically implementing strategies like these to attain a strengths-based
culture can dramatically boost key business outcomes. In one company,
stores that coupled a new customer strategy with a strengths-based
focus generated an estimated 66% higher sales growth than the average
store, versus 26% higher among those that executed the new customer
strategy alone.

Team members who know each other’s
strengths can more effectively relate to
one another, avoiding potential conflicts
and boosting group cohesion.

04Tapping
Entrepreneurial
Energy for
Job Growth

State of the Global Workplace | 04 | Tapping Entrepreneurial Energy for Job Growth
23%
of adults worldwide say they
have access to training on how
to start or grow a business.

UNEMPLOYMENT, LOW-QUALITY JOBS AND INSTABILITY stifle progress in
countries trying to build economic momentum. A vicious cycle perpetuates:
Political instability and violence create risk, discouraging investment and job
creation, which, in turn, fosters more instability — particularly among young
people. This cycle can be a crippling problem in developing regions like sub-
Saharan Africa, as well as more economically developed countries like Spain
and Portugal.
Societies grappling with low growth rates
and a scarcity of good jobs need ways to
identify, nurture and empower high-growth
“builders” — individuals who are engaged
in the process of building something that
creates new economic energy. Importantly,
this group includes both those who start
new businesses and those within existing
organizations who develop products and
services to address new market needs. In
short, builders turn new ideas into value
for customers.
Policymakers worldwide recognize that nurturing builders is essential to
combat joblessness, reduce socio-economic disparities and spur overall
economic growth. Many governments pursue a range of policies, from tax
breaks or subsidized lending to training in finance, accounting and marketing
to encourage individuals to start businesses. In most cases, however, such
measures are not enough to encourage novel and high-growth startup
activity — the kind that contributes to job creation and economic growth in a
significant way.
Societies grappling with
low growth rates and
a scarcity of good jobs
need ways to identify,
nurture and empower
high-growth “builders.”

Though most global leaders recognize the value of entrepreneurial activity,
there is an urgent need to heighten residents’ interest in the concept of
entrepreneurship to ensure that those with the capacity to be powerful
builders can aspire to fulfill that potential. At the societal level, that means
taking concrete steps to help mitigate the risk that prospective business
owners face by strengthening the rule of law, combating corruption and
maintaining a social safety net that makes the consequences of failure
less severe.
At the business level, leaders can directly address the need for increased
entrepreneurial activity through a greater understanding of the personal
characteristics that promote business-building success — and the strategies
for equipping young people who display such talents with the knowledge
and skills they need to create thriving enterprises.
THE MACRO VIEW: CULTURAL AND STRUCTURAL CHALLENGES
Entrepreneurial success that leads to job creation is harder to attain in some
countries and regions than in others. Barriers may include deeply entrenched
cultural or historical patterns. For example, in developed Western countries
with free markets, people are far more likely to say they would rather work
for a private business than for the government. However, where residents
are accustomed to a more paternalistic relationship between citizens and
the state — as is the case in much of the Middle East/North Africa and
post-Soviet Eurasia — people commonly prefer to have a job working for
the government.

% Business
PREFERENCES OF WORKING FOR GOVERNMENT VERSUS
PRIVATE BUSINESS
Would you rather have a job working for the government or working for a business?
27
54
26
41
26
36
34
35
49
33
43
32
57
32
50
30
64
27
50
26
62
58Middle East/
North Africa
Post-Soviet Eurasia
South Asia
East Asia
Sub-Saharan Africa
Eastern Europe
Australia/
New Zealand
Southeast Asia
U.S./Canada
Latin America
Western Europe
% Government

These data demonstrate the influence that cultural factors have on residents’
likelihood to consider starting a business. In regions where risk aversion is
part of the cultural fabric, or where individual initiative is downplayed in favor
of a more collective mindset, fewer people may even consider starting their
own business. To stimulate entrepreneurial activity, governments and
businesses in these countries need to identify and counter cultural factors
that may be hindering innovation.
Unfortunately, cultural biases against
business startups are often reinforced
by government policies that do not
encourage private-sector growth, such
as burdensome regulations for registering
businesses or obtaining credit. Further,
many countries lack institutional support
for developing the human capital
necessary to meet the needs of growing
businesses, such as equitable education
and healthcare systems.
In most regions, including economically developed areas like Western
Europe and the U.S./Canada, less than one-third of residents believe that
their government makes it easy to start a business, implying that public
investment in education and healthcare may not be contributing to private-
sector growth as effectively as it could be.
In other countries — most notably, sub-Saharan Africa — support for human
capital development is so weak that even in places where governments make
it easy to start a business, the vast majority of entrepreneurs do not have the
skills needed to launch startups that have the potential for long-term growth.
The following table ranks global regions by the average “yes” responses
to these factors, revealing that public perceptions of these items are most
positive in Southeast Asia, currently one of the most economically dynamic
regions in the world.
Many countries lack
institutional support for
developing the human
capital necessary to meet
the needs of growing
businesses, such as
equitable education and
healthcare systems.

VIEWS OF LOCAL FACTORS THAT HELP TRANSFORM HUMAN CAPITAL INTO
BUSINESS DEVELOPMENT
Believe
government
makes it
easy to start
a business*
%
Satisfied
with local
education
system
%
Satisfied
with local
access
to healthcare
%
Average
index
%
Southeast Asia 49 82 77 69
Australia/
New Zealand
25 70 84 60
U.S./Canada 30 65 75 57
South Asia 34 73 60 56
Western Europe 25 66 75 55
East Asia 24 59 70 51
Sub-Saharan
Africa
36 54 43 44
Latin America 30 57 42 43
Middle East/
North Africa
28 49 49 42
Eastern Europe 14 59 51 41
Post-Soviet
Eurasia
18 54 40 37
*Data for this question collected in 2013, except in South Asia, Southeast Asia and Australia/New
Zealand where it was collected in 2014.
In addition to establishing critical supports for business development,
Gallup’s global data suggest that leaders in some regions need to highlight
the critical role of business builders in economic progress. One advantage
characteristic of the United States is that its successful entrepreneurs are
highly respected, even held up as emblematic of the American ideal. In
many countries — particularly those with low social mobility and pervasive
corruption — business owners are less likely to be admired.
Gallup polls conducted in 2013 asked respondents worldwide whether
those who run their own business are good role models for youth in their

country. The proportion who said “yes” ranged from 88% in the U.S./Canada
to less than half (46%) in Eastern Europe and post-Soviet Eurasia.
PERCEPTION OF BUSINESS OWNERS AS ROLE MODELS
In [country], are people who run their own business considered good role models
for youth, or not?
% Yes
THE MICRO VIEW: NURTURING TALENTED ENTREPRENEURS TO
SPUR ORGANIC GROWTH
More than anything else, generating enthusiasm for entrepreneurship
depends on taking steps to increase entrepreneurs’ odds of success. In
addition to high-level efforts to improve the institutional environment in which
small and medium-sized enterprises (SMEs) operate, smaller-scale initiatives
66
88
80
80
77
75
69
69
60
52
46
46
World
U.S./Canada
Australia/
New Zealand
Southeast Asia
Sub-Saharan Africa
Latin America
East Asia
Western Europe
Middle East/
North Africa
South Asia
Eastern Europe
Post-Soviet Eurasia

such as business incubators and entrepreneurial training are essential. In
many places, opportunities to attain the basic knowledge required to start
and grow a business are relatively scarce, presenting a major barrier to
SME development. Worldwide, 23% of adults say they have access to such
training; regionally, only in the U.S./Canada and Australia/New Zealand do
most residents say they have access.
AVAILABILITY OF TRAINING ON STARTING OR GROWING A BUSINESS
Do you have access to training on how to start or grow a business, or not?
% Yes
World
U.S./Canada
Australia/
New Zealand
Western Europe
Post-Soviet Eurasia
Eastern Europe
Middle East/
North Africa
Sub-Saharan Africa
Southeast Asia
Latin America
East Asia
South Asia
23
61
59
38
31
27
27
25
24
23
18
12

Tools for identifying and developing innate “builder” talent can further bolster
efforts to promote entrepreneurial success. Builders, particularly those who
introduce new products or services, are often confronted with formidable
challenges. They typically must navigate untested markets, working in
uncertain environments with limited resources and no guarantee of success.
Thus, personality characteristics such as risk tolerance, achievement drive,
creativity and self-efficacy are important to success.
Identifying and supporting individuals
who have such characteristics can spur
high-growth venture creation. Gallup’s
research indicates that training innately
talented builders to understand their
own traits, attitudes and values leads to
psychological clarity through which they
gain confidence in their ability to start and
grow new ventures.
Gallup has developed a structured online
assessment called the Builder Profile 10TM
(BP10) with the goal of identifying and
developing builder talent. The assessment
was derived from a study of success
among 4,000 entrepreneurs in the U.S.,
Germany and Mexico. The results identified 10 talents that were most highly
correlated with business success. Successful builders use some mix of
these characteristics in starting or growing new enterprises:
•• Confidence: You accurately know yourself and understand others.
•• Delegator: You recognize that you cannot do everything and are
willing to contemplate a shift in style and control.
•• Determination: You persevere through difficult, even seemingly
insurmountable, obstacles.
•• Disruptor: You exhibit creativity in taking an existing idea or product
and turning it into something better.
Gallup’s research
indicates that training
innately talented
builders to understand
their own traits,
attitudes and values
leads to psychological
clarity through which
they gain confidence in
their ability to start and
grow new ventures.

•• Independent: You are prepared to do whatever needs to be done to
build a successful venture.
•• Knowledge: You constantly search for information that is relevant to
growing your business.
•• Profitability: You make decisions based on observed or anticipated
effect on profit.
•• Relationship: You have high social awareness and an ability to build
relationships that are beneficial for the firm's survival and growth.
•• Risk: You instinctively know how to manage high-risk situations.
•• Selling: You are the best spokesperson for the business.
The social and cultural dynamics that
affect interest in entrepreneurial activity
play out within organizations as well
— and their implications for business
growth may be just as important. As
startups begin to grow, they eventually
face the same issues that existing
companies face: the need for innovation.
But in countries with a tradition of strong
central authority, like many former Soviet
republics, employees’ entrepreneurial and
innovative impulses are suppressed. Thus,
processes for identifying and developing
natural builders can also be invaluable
for spurring “intrapreneurship” — the
implementation of new ideas and products
within organizations — to help businesses
stay well-positioned for future market needs.
Processes for identifying
and developing natural
builders can also be
invaluable for spurring
“intrapreneurship” —
the implementation of
new ideas and products
within organizations
— to help businesses
stay well-positioned for
future market needs.

PUBLIC- AND PRIVATE-SECTOR LEADERS CAN TOGETHER BUILD
THRIVING ENTREPRENEURIAL ECOSYSTEMS
When government and private-sector organizations collaborate to promote
entrepreneurial activity, they can address the task at several levels, from the
macro public policy environment to individual students and employees.
Mexico is one country involved in pursuing such collaborative strategies.
Since 2014, Gallup has been working with Mexico’s Ministry of Economic
Development, the Ministry of Education and several public high school
systems in Mexico City to identify and develop future entrepreneurs. These
students gain self-confidence and motivation — essential attributes for
entrepreneurs. And even if they aren’t ready to start their own business
right away, the seed has been planted, producing the potential to grow in
the future.
Identifying entrepreneurs and providing them with training and support helps
them realize that a successful business startup is a viable option — one that
increases their economic potential. A majority may not ever start their own
business, but training them to think like entrepreneurs makes them better
prepared to work in uncertain and changing environments. Over the long
term, such strategies for developing talented builders can help community
leaders cultivate a broader entrepreneurial ecosystem that leads to more
business startups and higher success rates.

When government and private-sector
organizations collaborate to promote
entrepreneurial activity, they can address
the task at several levels, from the macro
public policy environment to individual
students and employees.

05Western Europe
Austria, Belgium, Denmark, Finland, France,
Germany, Iceland, Ireland, Italy, Luxembourg,
Malta, Netherlands, Norway, Portugal, Spain,
Sweden, Switzerland, United Kingdom
10%
of employees in
Western Europe
are engaged.

State of the Global Workplace | 05 | Western Europe
% Employed full time
for an employer
36% 67%
SwedenItaly
See the appendix for "good jobs" data, by country.

46%
of working-age adults in
Germany are employed full time
for an employer.
32%
globally
VS.

WESTERN EUROPE IS ONE OF the most socially and economically developed
regions in the world, but many of its countries have endured financial and
political turmoil over the last decade. The global recession of 2009 triggered
debt crises in several countries, including Portugal, Ireland and Spain,
sending shock waves throughout the European Union. Much of Western
Europe is still plagued by high unemployment and slow growth.
Discrepancies in workforce productivity
have driven much of the resulting political
fallout. Workers in debt-ridden southern
EU countries tend to contribute much less
to their country’s gross domestic product
(GDP) with every hour worked than do
workers in many northern nations, such as
Germany and the Scandinavian countries.
The consequence is that more solvent
EU countries have had to bail out those
on the verge of economic catastrophe —
contributing to the current debate about
the future of European integration.
Employment data from the Gallup World Polls conducted from 2014 to 2016
indicate that northern countries in Western Europe tend to have higher rates
of residents working full time for an employer — a key metric in assessing the
maturity and vitality of a country’s labor market. The Scandinavian countries
top the list — particularly Sweden, where two-thirds of residents aged 23
to 65 (67%) work full time for an employer. This number falls below 40% in
Spain (37%) and Italy (36%).
In some cases, however, focusing exclusively on this employment metric
may give a misleading picture of labor markets in the region. In Germany,
for example, less than half of working-age adults (46%) are employed full
time for an employer, but relatively high proportions are employed part time
by choice (15%) or are self-employed (10%). In a developed economy like
Germany’s, such responses likely reflect flexibility in employment options to
accommodate work-life balance.
Western Europe is one
of the most socially and
economically developed
regions in the world,
but many of its countries
have endured financial
and political turmoil
over the last decade.

EMPLOYEE ENGAGEMENT CONSISTENTLY LOW ACROSS
WESTERN EUROPE
Variations within the EU notwithstanding, some issues affecting Western
Europe’s workforces are overarching. One challenge common in highly
developed countries around the world is an aging population: Low birth rates
and rising life expectancies mean older residents are retiring at a more rapid
rate than younger residents are entering the workforce.
But there is another challenge: Throughout Western Europe, employee
engagement levels are relatively low. Regionally, just 10% of employed
residents are engaged — involved in and enthusiastic about their work. By
comparison, 33% of employees in the U.S. are engaged.
Atop the list of Western European countries is Norway, with 17% of
employees engaged in their work. As dismal as that percentage seems, in
some countries, it is far lower. In France, for example, just 6% of employees
are engaged, while 25% are actively disengaged. In Italy, 5% are engaged,
and 30% are actively disengaged — the highest proportion of actively
disengaged employees in all 155 populations worldwide included in
this analysis.
These dismal engagement results offer insight into why labor productivity in
many European countries trails that in the U.S. and in most cases has not
returned to the growth rates seen before the global financial crisis. Europe’s
businesses need new ways to address these productivity challenges so they
can move past the malaise that weighs many of them down.
The good news is that they often need to look no further than their own
workforces. That’s not to say that addressing challenges like these is easy —
it typically requires a cultural transformation that affects how all employees
think about their job and interact with those around them. It also means
committing to management changes that drive continual development,
positivity and future orientation. But such transformation is entirely possible
and offers a powerful competitive advantage, as industry leaders on both
sides of the Atlantic have demonstrated.

ENGAGEMENT LOW, ACTIVE DISENGAGEMENT HIGH AMONG EMPLOYEES
IN SEVERAL WESTERN EUROPEAN COUNTRIES
Engaged
%
Not
engaged
%
Actively
disengaged
%
Norway 17 75 8
Denmark 16 73 11
Iceland 16 76 8
Malta 16 70 14
Portugal 16 70 14
Germany 15 70 15
Sweden 14 75 11
Ireland 13 71 16
Switzerland 13 76 12
Austria 12 71 18
Finland 12 76 12
Netherlands 12 75 13
United Kingdom 11 68 21
Belgium 10 73 17
Luxembourg 8 80 13
France 6 69 25
Spain 6 79 15
Italy 5 64 30

WESTERN EUROPE SPOTLIGHT: EMPLOYEE PRODUCTIVITY IN
EUROPE VERSUS THE U.S.
Europe can match U.S. productivity if it puts greater emphasis on
people management.
Gallup’s current workplace results from European employees don’t make
for pleasant reading for the continent’s employers. Most employees feel
underused and unable to be their best at work. Levels of engagement have
been low for the best part of a decade in Europe. If those trends don’t
change, European countries’ productivity levels will continue to lag behind
those in the U.S. And given that some of Europe’s largest economies
are facing aging populations without enough young workers to replace
their rapidly rising number of retirees, the potential exists for the gap in
productivity to widen.
This article places Gallup’s workplace engagement data (based on Gallup
World Polls conducted from 2014 to 2016) alongside other high-profile
indicators of workforce vitality, including:
•• global competitiveness (World Economic Forum [WEF], 2016-2017)
•• country-level data for productivity and hours worked (Organisation
for Economic Cooperation and Development [OECD], 2015)
•• global creativity (Martin Prosperity Institute, University of Toronto,
Rotman School of Management, 2015)
To understand what facilitates productivity, Gallup placed a country's GDP
per capita in the context of its performance on several WEF indicators
of productivity and long-term prosperity, such as health, education,
infrastructure and innovation. Our analysis shows that these indicators — the
strongest being technological readiness — account for about 89% of the
variation in GDP per capita among 34 OECD countries. Gallup’s work with
clients in the U.S. and Europe leads us to believe that the remaining 11% of
variation hinges on how people are managed in the workplace.

Higher engagement means greater
productivity. Gallup research shows that,
across industries and countries, teams
with highly engaged members are, on
average, 17% more productive than those
with lower average engagement. Levels
of engagement have been growing slowly
but steadily in the U.S.; 33% of American
workers are engaged versus only 10% in
Western Europe.
Consider this analogy for engagement: On
one side of a rope in a 10-person tug-
of-war competition, a team from the U.S.
has three fully engaged people working hard to pull their team over the line.
On the other side, one European is engaged in the contest, weighed down
with nine teammates who haven’t been equipped to put in their best effort.
Assuming the size, strengths and expertise of the tug-of-war teams are
equivalent, which team would prevail?
The World Economic Forum’s Basic Requirements Subindex — the
component of the WEF’s Global Competitiveness Index that compiles basic
indicators related to institutions, infrastructure, macroeconomic environment,
and health and primary education — ranks Germany 10th
in the world, and
the U.S. comes in at 27th
. Nevertheless, American workers outperform
their German counterparts. German workers are productive and creative
relative to most other countries studied, according to data from the OECD
and Martin Prosperity Institute, respectively — but they aren’t engaged
at work. Compared with the Germans, U.S. employees are far more likely
to be engaged. In fact, among all OECD countries with relatively high
productivity and creativity scores, the U.S. has the highest proportion of
engaged employees.
Gallup research shows
that, across industries
and countries, teams
with highly engaged
members are, on
average, 17% more
productive than
those with lower
average engagement.

PRODUCTIVITY, CREATIVITY AND ENGAGEMENT AMONG
OECD WORKFORCES
% Employees engaged at work
5
10
15
20
25+
GlobalCreativityIndex
2015 GDP Per Hour Worked
Sum of 2015 GDP per hour worked vs. sum of Global Creativity Index. Size shows percentage of
employees engaged at work.
1.0
0.8
0.6
0.4
0.2
0 20 40 60 80 100
Mexico
Turkey
Chile
Japan
U.K.
Australia
Norway
Ireland
Luxembourg
U.S.
Belgium
Germany
Slovakia
Greece
Poland
Latvia
Estonia
Czech Republic
Hungary
South Korea
Israel
Portugal Italy
Denmark
Netherlands
Canada
Finland
Sweden
New Zealand
Iceland
Spain
Slovenia
Austria
France
Switzerland

Previous generations and governments have bequeathed Western
Europeans with what should be unassailable productivity advantages:
universal healthcare, decent schools, technical training and apprenticeships,
good public transport and roads, and a welfare safety net — but European
companies are letting down their workers. The Nordic countries —
Switzerland, Germany, Holland, Austria, Belgium, France, Luxembourg —
and, to a lesser degree, the U.K., lead the U.S. in these productivity enablers.
Despite this, U.S. companies are out-managing their European counterparts,
resulting in much higher proportions of engaged employees.
In 2016, the 10 most valuable publicly traded companies in the world were
all from the U.S. — four of the 10 didn’t exist 50 years ago, three didn’t exist
25 years ago and one is just 13 years old. Three of the four hyperdynamic
companies have reputations as being progressive, outstanding places to
work. By contrast, it’s hard to think of large European companies where the
reasons people want to join go beyond salary, benefits packages and the
potential for progression — and include an engaging culture.
In our organizational work, we’re often struck by how little stock European
management teams put into leading their people — despite survey after
survey showing that good management and leadership are by far the
strongest drivers of how engaged people are. Consequently, inept managers
pervade many European companies at all levels. It’s a shame: Driving higher
productivity through better engagement is fast and inexpensive compared
with, say, overhauling a national health system or upgrading public transport.

WESTERN EUROPE SPOTLIGHT: UNITED KINGDOM
Breaking up is hard to do — employee engagement suffers amid
post-Brexit uncertainty.
“Panic on the streets of London, panic on the streets of Birmingham.” So
sang Britain’s foremost miserablist Morrissey on The Smiths’ song “Panic” in
1986. Thirty years later, in the wake of the United Kingdom’s decision to
leave the European Union, there are
many who would paint the country’s
future in a similar light. Given that it is
unprecedented for a country to leave
the EU, there is no historical record
to help predict what happens next.
The resulting uncertainty may leave
many British employees —
particularly those in export-oriented
industries — worried about what the
future will bring.
Gallup’s latest workplace data reveal that, when it comes to employee
engagement, neither the average British company nor those in many
mainland European countries can afford much of a decline. Only about one
in 10 British workers (11%) is engaged at work, while the majority (68%)
are not engaged, and two in 10 (21%) are actively disengaged. Aggregated
results for the EU overall are similar.
EMPLOYEE ENGAGEMENT IN THE U.K. AND EU
Engaged
%
Not
engaged
%
Actively
disengaged
%
United Kingdom 11 68 21
European Union overall 11 70 19
11%
of British workers are engaged
at work.

The relationship between employee engagement and positive business
outcomes is described in more detail in Chapter 2, but here, it suffices
to note that engaged workgroups are 17% more productive than are
workgroups in the bottom quartile of engagement. With the United
Kingdom’s annual GDP growth rate not having strayed far from 2% recently,
an uptick in productivity would be a huge boost for an area newly shorn of
the protection of the EU single market. In terms of GDP per working hour,
the U.K. currently lags behind many developed countries — including the
U.S., by about 30 percentage points.
The Millennial Factor
While the U.K.’s economy could benefit from a boost, preparing for the
future in an uncertain environment is never easy. Among the most important
considerations for company leadership are the needs and preferences of
a growing sector of the U.K.’s employee and consumer populations: the
millennial generation.
To some extent, knowing what millennials want as customers and as
employees will determine whether a company succeeds over the next 20
years. Gallup’s research on millennial employees in the U.K. and Europe
suggests that they are unforgiving of tragic workplaces and managers. Even
with sky-high unemployment, little disposable income and minimal savings,
millennials will leave a job that they feel stunts their growth. The flip side is
that these are exactly the type of fearless, status quo-rejecting people that
companies need to stay relevant.
What’s more is that 75% of 18- to 24-year-olds in Britain voted to remain
a part of the EU in the referendum. Many of the country’s young adults feel
betrayed by their elders’ vote to seemingly limit their future and freedom
of mobility. It is going to take more than fancy sofas at Google’s London
headquarters in Soho to win back millennials’ allegiance. Businesses need
to understand the attitudes and aspirations that motivate them.

However, many British businesses
currently neglect motivational
considerations when it comes to
younger employees — or those of
any age. At best, leaders in such
businesses think their people are
important, but they either don’t know
what to do, or their thinking around
how to raise performance is plain
wrong. At worst, they don’t consider
people as a factor in how they win.
Businesses Need to Lead in Times of Uncertainty
While uncertainty reigns over the United Kingdom, with the daunting tasks
of renegotiating trade deals with the rest of the world, rewriting laws that are
no longer applicable and keeping skittish international investors from bolting
to continental Europe, it is business leaders who can provide stability for
their employees.
The first key is to communicate. Businesses need to be upfront and clear
in their messaging, especially when delivering bad news. It is possible
to deliver difficult news without disengaging employees. If a company
has recently undergone job losses, pay cuts and reduced market share,
leaders don’t need to hire motivational speakers, but they do need to deliver
messages infused with trust, stability, compassion and hope for employees.
On a local level, company culture should call for managers to communicate
expectations clearly and listen to and value the opinions of their employees.
No one wants to feel like they are ignored.
75%
of 18- to 24-year-olds in
Britain voted to remain a part
of the EU in the referendum.

Secondly, there must be individualization, especially with millennials in mind.
Their interests are so diverse and wide-ranging that a one-size-fits-all
approach will be ineffective and possibly even counter-productive. For
employees to thrive and be engaged, they need to be in positions where they
can do their best work every day, know and use their strengths, and have
frequent check-ins with their manager and mentors to reinforce
positive behavior.
Recognition is the final piece of the puzzle.
Effective, individualized communication
has a restorative effect on employees,
and the effect of a well-timed, meaningful
piece of recognition can be a huge
motivational boost. It is important to
balance negative messages with positive
ones and to look for the silver lining:
Connect what you are asking of your
employees back to your organization’s
mission. Let them know how they are
contributing to a greater purpose. There is
a popular notion that millennials don’t like
to work, but that notion is a myth. They just
need to be motivated properly.
With the British government sailing into uncharted waters as Brexit
negotiations proceed, it is up to businesses to provide the stability that
employees are looking for. Business leaders need to have the right mindset
and skills to make sure their employees are engaged at work. With so much
at stake, one thing is certain: “Keep calm and carry on” is no longer the
panacea it once was.
Effective,
individualized
communication has a
restorative effect on
employees, and the
effect of a well-timed,
meaningful piece of
recognition can be a huge
motivational boost.

WESTERN EUROPE SPOTLIGHT: GERMANY
German companies need new workplace strategies to boost
retention and ensure work-life balance.
Germany has long been recognized as the economic powerhouse of Europe.
However, Gallup’s workplace studies indicate that only 15% of employees in
the country are engaged at work (emotionally and behaviorally connected to
their job and their company’s mission), leaving much room for improvement.
Though this figure is in line with Western Europe (10% engaged regionally),
it is less than half of the percentage in countries where employee
engagement levels are highest, including the U.S., at 33%.
Another 15% of German employees are actively disengaged, meaning
that for every employee who is highly motivated, positive and productive,
another is resentful and disruptive.
Gallup estimates that disengaged
German workers cost the country’s
economy between 80.3 and 105.1
billion euros each year — for example,
through higher annual absentee rates
(10.3 days for actively disengaged
employees, compared with 6.5 days
for engaged workers) or customer-
facing employees who transfer their
negativity to consumers.
Job Security and Work-Life Balance Top the List of
Employees’ Expectations
Engaging workers means not just ensuring that they know what is expected
of them, but also understanding what they expect from their job. When
German employees are asked to rate the importance of 19 possible
employment attributes on a 1-5 scale, work-life balance ties with job security
for the highest average rating. Thus, while German workers need stability in
uncertain economic times, they also want to know that their job will fit well
into their life.
80.3-105.1
Gallup estimates that
80.3-105.1 billion euros
are lost each year due to
disengaged German workers.

GERMAN EMPLOYEES RATE JOB SECURITY, WORK-LIFE BALANCE AS
MOST IMPORTANT EMPLOYER ATTRIBUTES
Average rating on 1-5 scale, with 1 being “not at all important” and 5 being
“extremely important”
Importance
Job security 4.52
Work-life balance and personal well-being 4.52
Doing what I am really good at 4.45
Great colleagues to work with 4.44
Great manager 4.35
Vacation days 4.33
Challenges and excitements 4.31
Flexibility in working hours/time 4.15
Autonomy 4.13
Income or income potential 4.12
The organization's culture 4.02
The organization and its leaders' reputation 4.00
Benefits, perks, convenience 3.96
The organization's mission and purpose 3.92
Innovation 3.85
Professional or career growth and development opportunities 3.79
Health and well-being programs 3.69
Opportunity to manage or lead others 3.68
Child care 3.05

The good news is that German employers seem to have made some
progress in this regard. In 2005, one-quarter of employees (25%) strongly
agreed with the statement “My company allows me to balance work and
private life” — 37% strongly agree today. However, there is still a substantial
gap between the perceived importance of this expectation and workers’
satisfaction with how well employers are meeting it.
It’s not that Germans don’t see work as an important part of their life — in
fact, their work ethic is so strong that more than three-quarters of employees
(77%) say they would continue to work even if they inherited enough money
to make working unnecessary. However, working consistently long hours in a
job that offers little flexibility can lead to burnout and associated
consequences: exhaustion, irritability, physical ailments, and suffering
relationships with friends and family.
Of actively disengaged German
workers, 53% say they felt burned
out at work in the past 30 days, but
only 17% of engaged employees
report having the same feelings.
German leaders need to recognize
burnout not as just a psychological
problem, but as a serious economic
one as well — burnout costs
businesses 9 billion euros each year.
77%
of German employees say they
would continue to work even if
they inherited enough money to
make working unnecessary.

Meeting Employees' Expectations Is a Manager’s No. 1 Job
Creating a culture of enthusiasm, energy and positivity should be at the very
top of every manager’s to-do list. To accomplish this, managers must have
ongoing conversations with employees in addition to formal performance
evaluations so they better understand the factors affecting their team
members’ performance and can work with them on ways to ensure work-life
conflicts don’t erode their engagement or productivity levels.
Having a “great manager” is also among the five workplace qualities that
German employees rate as most important. Almost one in five German
workers (18%) say they have considered leaving their current job within the
past year solely because of a bad manager. That figure drops to just 3%
among engaged employees, whereas nearly half of actively disengaged
employees (45%) have considered leaving because of a bad manager.
Having a “great manager” is among the five workplace
qualities that German employees rate as most important.
3%
of engaged employees have
considered leaving because of a
bad manager.
VS.
45%
of actively disengaged
employees have considered
leaving because of a
bad manager.

Despite the need for these critical relationships, German management
culture is often sorely lacking training or education that emphasizes
managing people; instead, it remains largely focused on administrative
processes and finances. In many cases, MBA programs and human
resources practices continue to give short shrift to psychological factors
affecting motivation and productivity among the workers who drive
Germany’s robust economy.
By contrast, managers who are skilled at engaging employees think of
themselves as coaches and mentors who nurture workforce talent. They
take a more holistic view of employees’ work experiences — seeking
common ground between employees’ personal goals and the needs of the
organization so that the two can grow together into the future. Managers
who have ongoing training about how to approach their job as a coach and
who understand how to engage employees could go a long way in creating a
more energetic, productive and happy German workforce.

Managers who are skilled at engaging
employees take a more holistic view of
employees’ work experiences — seeking
common ground between employees’
personal goals and the needs of the
organization so that the two can grow
together into the future.

06Eastern Europe
15%
of employees in
Eastern Europe
are engaged.
Albania, Bosnia and Herzegovina, Bulgaria,
Croatia, Cyprus, Czech Republic, Estonia,
Greece, Hungary, Kosovo, Latvia, Lithuania,
Macedonia, Montenegro, Northern Cyprus,
Poland, Romania, Serbia, Slovakia, Slovenia

State of the Global Workplace | 06 | Eastern Europe
% Employed full time
for an employer
19% 66%
EstoniaAlbania
See the appendix for "good jobs" data, by country.

State of the Global Workplace - Gallup Report (2017)

State of the Global Workplace - Gallup Report (2017)

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